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Sunday, April 29, 2012

It has been more than two months since I have posted
anything at The Daily Bell website.During
this time, I have rarely visited the site even to read an article; however I would
occasionally check on a Saturday to see what Anthony Wile has written, or on a
Sunday to see if there is an interview of note.

Imagine my surprise when I noticed the following statement
in place of the comments section:

Effective April 25, 2012, the Daily
Bell will discontinue allowing feedback comments. We have left in place the
large body of responses posted in the past, as we appreciate the valuable
contributions made by some of our readers.

This is an end of an era…at least for me.It is significant enough that I feel I should
memorialize it in some manner.

I don’t remember how I first came across the site – likely it
was from a posting at LewRockwell.com.I
remember enjoying the first post I read, and regularly made it a habit to read
the daily articles.Fairly quickly, I
began to post comments – many of my more substantial comments are also posted
here at this site.The board was wide
open, at the time not even requiring a registration to post a comment.I found the dialogue in the comments to be as
worthwhile as the articles.This is rare
in any such community, and likely unheard of in an open site.Many participants felt the same.

In this community, I learned a great deal: from what I read,
in thinking through what I wanted to write, and in defending what I had
written.Through the generosity of
Anthony Wile, I had found a platform with reasoned and intelligent dialogue,
and where I could stretch my ability to reason and communicate.

The host had a very difficult job – to try to find a path
that allowed the most free-flowing conversation while still maintaining some sense
of integrity in the community.Certainly,
there was the occasional bad apple posting to the board – there was even one
full-time troll!However, there were
many wonderful, regular contributors: John Danforth, Lila Rajiva, Leonardo
Pisano, NAPpy, and many others.There
was more pleasure in the interaction and feeling of community than in the
reading.

I mentioned earlier that I stopped posting over two months
ago, and irregularly visited the site in that time.I cite April 25 as the end of an era at The
Daily Bell, but it strikes me as just the concrete date to an abstract idea (at
least for me).I had occasionally
stopped interacting in the community before.Usually it was for the reason that the interaction was difficult in some
manner.Once in a while, I found myself
getting too engrossed in some issue, and I felt a break was necessary.More often it was because of my views about
the dialogue, that it had become too abusive in some manner.This was certainly true two months ago.

Throughout this time I reflected on the likelihood of my
continued participation.I would occasionally
read the comments.While there was still
the occasional great post, the discussion was nothing like what it had been in
the past.In fact, many of the
participants that made the site a worthwhile visit had long since disappeared.

This is why I view April 25 as the concrete date to an
abstract idea.The comments section some
time ago ceased providing the enjoyment to me that it did in the past – not that
anyone owed me anything, however the flip side is I didn’t have to participate
where I didn’t find the same value, either.But as of April 25, the comments section has gone away altogether.While I have no idea why Anthony Wile has
made this decision, it seems a fitting end to an era that in some ways passed a
long time ago for me.

Although I have not participated in some time, it still is a
sad occasion for me.The Daily Bell
offered to me, in some ways, a place for me to cut my teeth.If not for The Daily Bell, I likely would not
have started this blog. There truly was an environment in which ideas outside of
the mainstream could be discussed openly, within a community that was willing
to explore.

Sunday, April 22, 2012

…as Japan was the direct route by
which the United States entered the war it is necessary to examine the major
actions during this period which brought about the Japanese attack on Pearl
Harbor.This is the more necessary since
not only were the actions of our government not disclosed to the American
people at the time, but a generation of school children have grown up who never
knew the truth of these actions.

This is how Hoover begins this section covering the time
leading up to the Japanese attack on Pearl Harbor.I would only add that not only were the
actions of the government not told to the people at the time, but much of the
official government statements regarding this subject was misleading at best
and lies at worst.Additionally, it
isn’t just that the school children didn’t know the truth of these actions, but
that they were purposely told an inaccurate story.Sadly, more than one generation of children
have been told this story, and believe it with a faith stronger than religion.

Hoover recounts many episodes of Japanese attempts to secure
peace or at least a truce, including the replacement of the anti-American
Foreign Minister Yosuke Matsuoka with Admiral Teijiro Toyoda, who was pro Anglo
Saxon.Hoover counts this as a signal to
Roosevelt and Secretary Hull that more liberal elements in Japan had now come
into ascendency.However, this was lost
on the American administration:

…on July 25, 1941, a month after
Hitler’s attack upon Stalin, President Roosevelt, suddenly ignoring the
Japanese proposals, announced further economic sanctions upon them.

It is a review of the book by George Victor,The Pearl Harbor Myth: Rethinking the Unthinkable.I will refer to this book further while
discussing this section of Freedom Betrayed.

Victor believes a significant change came to Roosevelt
regarding his view toward Japan in the summer of 1941.Roosevelt became suddenly much more
aggressive and provocative toward the Japanese.Victor believes this change was prompted by the German invasion of
Russia, and Roosevelt’s desire to draw Japanese attention away from Asia and
the Russians and toward the Pacific and Americans.Whereas prior to the German invasion Russia
faced little in terms of risk in the war to date, post the German invasion
Russia was fighting a fierce and able enemy.Why Roosevelt had this concern for Russia’s fate is unknown, at least to
me.Hoover’s statement above is
consistent with this idea that Roosevelt suddenly took a different approach
during that summer.

Hoover recounts multiple and continual efforts by the
Japanese to meet and negotiate with the Americans:

On August 8, 1941, Ambassador
Nomura, on instructions from Tokyo, formally proposed to Secretary Hull a
meeting of Prime Minister Konoye with President Roosevelt at some place on the American
side of the Pacific.Secretary of War
Stimson was against the meeting.

An entry in Ambassador Grew’s
diary…dated August 18, 1941, summarized a long discussion between Ambassador
Grew and Foreign Minister Toyoda.As to
Konoye’s visit, Toyoda commented that:

…the Premier’s
going abroad would have no precedent in Japanese history.

On August 18, Grew telegraphed
Washington his recommendation:

The opportunity is here
presented…for an act of the highest statesmanship with the possible overcoming thereby
of apparently insurmountable obstacles to peace hereafter in the Pacific.

It seems “statesmanship” was not on the minds of the
statesmen in Washington.

On August 28, Nomura presented a
personal letter from Prime Minister Konoye to President Roosevelt….This
communication again urged the President to agree to a meeting….

After a meeting between Ambassador
Grew and the Japanese Prime Minister on September 6, Grew informed the Prime
Minister that his report to the President on this conversation would be the
most important cable of his diplomatic career:

…Prince Konoye, and consequently
the Government of Japan, conclusively and wholeheartedly agree with the four
principles enunciated by the Secretary of State as a basis for the
rehabilitation of relations between the United States and Japan.

The “four principles” touched upon in this proposal, also
known as the “four Hull principles", are the four points below:

·Respect for the territorial integrity and the
sovereignty of each and all nations.

·Support of the principle of non-interference in
the internal affairs of other countries.

·Support of the principle of equality, including
equality of commercial opportunity.

·Non-disturbance of the status quo in the
Pacific, however the status quo may be altered by peaceful means.

That Japan agreed “wholeheartedly” with these four
principles would have seemed like a strong basis by which to discuss peace, if
peace was the desired objective.

In a further report to Hull, Grew reported…

…Prince Konoye feels confident
that all problems and questions at issue can be disposed of to our mutual
satisfaction during the meeting with the President….

On September 29, Grew sent a dispatch to Roosevelt and
Hull.This was supported by a dispatch
from British Ambassador Craigie in Japan.Hoover describes these dispatches as “a sort of prayer for peace….”

…I earnestly hope
that we shall not allow this favorable period to pass….

…Japan is now endeavoring to get
out of a very dangerous position in which it has enmeshed itself by pure
miscalculation.

…I firmly believe…that if our
exploratory conversations can be brought to a head by the proposed meeting
between the President and the Prime Minister, substantial hope will be held
out…of preventing the Far Eastern situation from moving from bad to worse….

…We are informed…that in the
proposed direct negotiations Prince Konoye is in a position to offer to the
President far-reaching assurances which could not fail to satisfy us.

British Ambassador to Japan, Robert Craigie, sent a message
to Foreign Secretary Eden and Ambassador Halifax, with comments similar to
those made by Grew:

…My United States colleague and I
consider that Prince Konoye is…sincere in his desire to avert the dangers
towards which he now sees the Tripartite Pact and the Axis connection…are
rapidly leading Japan.

...my United States colleague and
I are firmly of the opinion that on balance this is a chance which it would
be…folly to let slip.

In footnotes to this section regarding Japanese attempts at
negotiation and reconciliation, Hoover notes:

After the war, records disclosed
that the Japanese Navy had urged peace.In the latter part of July, Admiral Osami Nagano, Chief of Naval General
Staff, advised the Emperor that the Japanese must try hard to make peace with
the United States, even abandoning the alliance with Germany if necessary.

Postwar documents…show clearly that
Konoye had commitments from the Emperor and the Navy that they would back him
in any terms he might make to get peace, even to defiance of the Army.

Ambassador Grew made strong statements in regards to the
notion that Japan could be brought to her knees via economic sanctions. Grew
repudiated this notion:

Grew warned against the illusion in
some sectors of the Washington Administration that Japan would not fight:

…even if Japan were faced with an
economic catastrophe of the first magnitude, there is no reason whatever to
doubt that the Government however reluctantly would with resolution confront
such a catastrophe rather than yield to pressure from a foreign country.

By early October, the Japanese were coming to the conclusion
that the United States never had any intention of coming to an agreement with
Japan.Hoover states the Japanese were
right!He cites a Stimson note from this
time:

I greatly fear that such a conference
if actually held would produce concessions which would be highly dangerous to
our vitally important relations with China.

By this time, the Japanese government was almost pleading
for a meeting, or for a more specific set of conditions under which the
Americans might come to terms.Toyoda
had instructed Nomura to ask Hull:

…whether the United States
Government would set forth in precise terms the obligations which the United
States Government wished the Japanese Government to undertake….

In the subsequent days, Toyoda made further such statements
to Grew.Hull, in his “Memoirs” give
little credence to this Japanese overtures, stating “Japan was not prepared to
make a general renunciation of aggression.”Hoover states: “This statement was scarcely the truth in the face of the
record of Konoye’s proposals….In any event no harm could come to the United
States by exploring their proposals.”It
also flies in the face of the statement that “…Prince Konoye, and consequently
the Government of Japan, conclusively and wholeheartedly agree with the four
principles enunciated by the Secretary of State as a basis for the
rehabilitation of relations between the United States and Japan.”

Once it was clear that Konoye’s efforts failed and there was
to be no direct meeting with Roosevelt, the Konoye Cabinet fell.Hoover describes this as “one of the
tragedies of the twentieth century….he was a man dedicated to peace, at any
personal sacrifice.”In a footnote,
Hoover comments:

Konoye’s subsequent life was a
confirmation of this.He refused to take
part in the war but did agree to undertake a special mission to Moscow in an
effort to seek peace….After the war Konoye offered his services in the problems
of reconstruction.But he was accused of
being part of the war conspiracy.He
committed suicide rather than bear the humiliation of a trial as a war
criminal.

The peacemaker is the one accused of war crimes.This is the way the peacemaker was treated
after the war.

In 1952, Grew reflected on this summer of 1941:

…we believed that Prince Konoye was
in a position to carry the country with him in a program of peace….

…Our telegrams seldom brought
responses…reporting to our government was like throwing pebbles into a lake at
night; we were not permitted to see even the ripples….Obviously I could only
assume that our recommendations were not welcome.

Grew’s recommendations likely would have been welcome is
some form of peace was desired.That
there was not even one attempt by the administration to secure the high level
meeting indicates that peace was not an option for the administration.Hoover indicates that no word of these
negotiations or cables was revealed to the Congress or the American people
until years later.

Hoover further outlines steps taken by Japan after the fall
of Konoye’s cabinet.After this, Japan
formed a cabinet under General Hideki Tojo as Prime Minister, a cabinet
described as composed of militarists with one exception, Foreign Minister
Shigenori Togo.Further attempts at
negotiations were made, and rebuffed.Grew again warned that the Japanese would not be stopped via the
sanctions, that “war would not be averted by such a course….”

At this time, the U. S. military leaders also stressed the
desire that the Washington Administration exert a restraining hand.In the conclusion of a memorandum sent to
President Roosevelt on November 5, Chief of Staff General Marshall and Chief of
Naval Operations Admiral Stark stressed that “No ultimatum be delivered to
Japan.”

On November 4 and 5, Washington intercepted secret
dispatches from Tokyo to ambassador Nomura.Japan was proposing new terms to avoid war, in two parts.In case Proposal “A” was not accepted,
Proposal “B” should be presented.

Proposal “A” was rejected.In Proposal “B”, Japan offered to agree with the United States not to
make any armed advances into regions of Southeastern Asia and the Southern
Pacific.Japan would withdraw its troops
from French Indo-China.Additionally,
Japan looked to normalize trade relations with the United States.

Hull found the conditions wholly unacceptable, despite
seeming to be not too distant from the “four Hull principles" discussed
above . Certainly these would be
unacceptable if war was the desired objective.These proposals otherwise would seem a basis for discussion if peace was
desired.

On November 25, President Roosevelt held a meeting of the
War Council. From this meeting came the infamous notes from Secretary Stimson,
as submitted to the Pearl Harbor inquiry:

…The question was how we should
maneuver them into the position of firing the first shot without allowing too
much damage to ourselves….

On November 26, Hull presented a ten-point proposal to the
Japanese.The Japanese considered this
an ultimatum.American military leaders
felt the same, as General Marshall notified his area commanders on November 27
that negotiations “appear to be terminated.”

Secretary Hull recalls:

Australian Minister Casey also
came to me on November 29 and suggested that Australia would be glad to act as
a mediator between the United States and Japan.I answered that the diplomatic stage was over, and that nothing would
come of a move of that kind.

In a stunning (or not) coincidence of timing, on December 6
President Roosevelt sent a telegram to the Emperor asking for peace.After all of the diplomatic attempts outlined
by Hoover in this section, it truly seems a cynical gesture on Roosevelt’s
part.Secretary Hull seems to have
agreed:

Hull commented in drafting the
President’s message that “its sending will be of doubtful efficacy, except for
the purpose of making a record.”

Yes, and an amazingly timely record at that.

Ambassador Grew’s repeated warning that Japan would rather
fight against all odds than submit came true on December 7.Roosevelt asked Congress for a declaration of
war with Japan on December 8.

Stimson noted in his diary that “a crisis had come which
would unite all our people….”Just as
had been planned and desired, it seems.

Hoover goes in to discuss the Congressional Pearl Harbor
inquiries conducted after the war’s conclusion.The majority opinion basically followed what is commonly held wisdom:
the Japanese attack was unprovoked; the Administration did everything possible
to avert war with Japan; everyone was surprised that the Japanese struck when
they did; the fault was primarily with the local command in Hawaii.

The minority members objected.Some witnesses were examined under oath,
others were not; permission to search files was denied, even if accompanied by
Committee counsel; permission to search for missing records was denied – it was
denied that any records were missing, although this was subsequently
demonstrated not to be the case.

Other revisionist opinions and analysis followed. For
example, Admiral Robert Theobald, Commander of the Destroyer Division at Pearl
Harbor, later concluded:

Diplomatically, President
Roosevelt’s strategy of forcing Japan to war by unremitting…pressure, and by
simultaneously holding our fleet in Hawaii as an invitation to a surprise
attack, was a complete success.

In 1947, George Morgenstern published an exhaustive study of
the attack:

…given the benefit of every
doubt…all of these men [the high authorities in Washington] still must answer
for much.With absolute knowledge of
war, they refused to communicate that knowledge, clearly, unequivocally, and in
time, to the men in the field upon whom the blow would fall….

Pearl Harbor was the first action
of the acknowledged war, and the last battle of a secret war upon which the
administration had long since embarked….Constitutional processes existed only
to be circumvented, until finally, the war making power of Congress was reduced
to the act of ratifying an accomplished fact.

Morgenstern brings us back full circle; to the truth that
U.S. entrance into World War II might have been technically declared by
Congress, but not prior to entry into the war by the U.S.War was not declared prior to the military
and war-like actions taken by the administration prior to the declaration.The vote by Congress was simply an
after-the-fact rubber stamp approval, a certainty to occur once the
administration set their plan in motion.

William Chamberlin concludes:

It is scarcely possible, in light
of this [Admiral Stark’s testimony regarding President Roosevelt’s October 8,
1941 order to American warships to fire on German ships] and many other known
facts, to avoid the conclusion that the Roosevelt Administration sought the war
which began at Pearl Harbor.The steps
which made armed conflict inevitable were taken months before the conflict
broke out.

George Kennan, a lifelong diplomat, summarizes:

…a policy carefully and realistically
aimed at the avoidance of a war with Japan…would certainly have produced a line
of action considerably different from that which we actually pursued and would
presumably have led to quite different results.

Yes, for instance one of the many Japanese overtures toward
peace might have been honestly acted upon.

British historian Captain Russell Grenfell, in his study of
the war, concludes:

No reasonably informed person can
now believe that Japan made a villainous, unexpected attack on the United
States.An attack was not only fully
expected but was actually desired.It is
beyond doubt that President Roosevelt wanted to get his country into war….Japan
was meant by the American President to attack the United States.As Mr. Oliver Lyttelton, then British
Minister of Production, said in 1944, “Japan was provoked into attacking
America at Pearl Harbour.It is a
travesty of history to say that America was forced into the war.

Finally, I will conclude with a passage from The Pearl Harbor Myth: Rethinking the Unthinkable.The author, George Victor comes to a
conclusion similar to those outlined above.It should be noted, Victor is a self-described admirer of President
Roosevelt: he accepts that this type of behavior is what leaders do.He is also realistic: we shouldn’t believe
that the only manipulative political leaders in the world are someone other
than “our” political leaders.He also
doesn’t take the easy path of concluding Roosevelt just made a mistake or was
somehow misled.

For Victor, there is little doubt that the administration
took steps to provoke Japan and knew when and where Japan would attack. These
leaders knew what they were doing and achieved the result that was
desired.

Events are poorly explained by
making assumptions that crucial acts by competent, conscientious leaders were
capricious, careless, or negligent. And U.S. leaders who figured in the Pearl
Harbor disaster were highly competent and conscientious.

After Roosevelt stationed the fleet
at Pearl Harbor, Commander McCollum wrote a memo for him, recommending its use
as a lure. Roosevelt implemented the recommendation. Admiral Richardson
concluded the administration use of the fleet endangered it gravely, and he
argued the point over and over with his superiors. When he took measures to
protect his fleet, Roosevelt relieved him. Stark then kept Kimmel uninformed of
Japan’s plans to attack it at Pearl Harbor. And Marshall kept Short uninformed.

To most Americans, manipulating
one’s nation into war is something done by foreign tyrants – not our own
leaders. Since 1942 U.S. history has been distorted by the idea that presidents
simply do not do what Roosevelt’s enemies said he did.

Friday, April 20, 2012

Yes, likely.But one that would have run its course within
12- 18 months if left alone to clear by market forces.

He also acknowledged that the
supervision by the Fed was inadequate.

Why wasn’t he fired for this?Perhaps because those he “supervised
inadequately” pay him for exactly this level of supervision.

Once the pool of real savings
starts stagnating, or worse, declining, the illusory nature of the Fed's policy
will be revealed — note that the economy follows the state of the pool of real
savings.

This is where we are headed under
current central banking and fiscal policies.Then the real depression will then appear in all of its force.

The actions of Bernanke to
revive the economy run contrary to the basic principles of running a company.
For instance, in a company of 10 departments, 8 departments are making profits
and the other 2 losses. A responsible CEO will shut down or restructure the 2
departments that make losses…

Bernanke’s job is to save the
banks.His job is to save the two
departments that are losing money regardless of the cost to the eight
departments that are profitable.

The financial sector does not
have a life of its own; its only role is to facilitate the real wealth that was
generated by the wealth producers.

This was true once upon a
time.It is no longer true.This truth has gradually eroded with the last
remnant disappearing in August 1971.The
financial sector DOES have a life of its own, and it is only for illusion that
the premise that banking exists to support the economy still is maintained.I have commented on this previously here:

Imagine an industry where raw materials
can be produced for free by the producer, cost almost nothing for the middleman
to acquire, who can also get his hands on as much of the raw commodity as
desired.

Further, there are no physical
limitations on the throughput of said raw materials: one worker can process
1,000,000,000 units just as easily as 1,000,000. No physical, mechanical,
computing, or energy differences regardless of throughput.

Finally, the members of this
industry can exist solely by trading by and between each other. While they also
go outside of the industry for revenue streams, this is not necessary. Swaps,
derivatives, etc., all are created and can be traded, if not solely within the
cartel, certainly primarily within the cartel.